According to a poll conducted for the Ordre des conseillers en ressources humaines agréés, one-third of Quebec workers polled believe that new measures affecting Quebec Pension Plan (QPP) benefits for those who retire before age 65 will encourage them to remain in the workforce longer.
The Quebec government’s March 17 budget announced significant changes to the QPP. In addition to gradual increases to both employee and employer contributions over the next six years, the monthly reduction rate for QPP benefits claimed before age 65 would be increased gradually beginning on Jan. 1, 2013. Also, beginning on Jan. 1, 2014, QPP benefits would be enhanced for individuals who start collecting after age 65 and before age 70.
The government stated the measures are being introduced in response to demographic pressures on the QPP. The Ordre des conseillers en ressources humaines agréés, an HR industry association in Quebec, says the changes will play a significant role in the province’s average retirement age, and how employers deal with older employees.
“Organizations will have to adjust their employee retention strategies to retain older employees. To keep these workers, they’ll have to continue offering them development opportunities and challenges, as well as flexible conditions that take their situation into account,” said Florent Francoeur, president and CEO of the organization.
Poll results indicate that 20% of respondents are thinking about changing their retirement age. While the current average retirement age in Quebec is 63, only 6% of respondents indicated they are now considering retiring before age 65. Respondents age 55 and over were most likely to plan to retire between 66 and 69 years of age (35%).
Francoeur said an upward shift in the province’s retirement age could benefit the province’s workforce.
“The continued presence of more experienced employees in the labour market is a good thing because their know-how can contribute both to organizations’ success and to Quebec’s prosperity,” he said.